Featured Product

    APRA Revises Measures to Strengthen Superannuation Member Outcomes

    August 28, 2019

    APRA published the prudential standard SPS 515, thus finalizing changes to the requirements for how superannuation licensees assess the outcomes they are delivering to their members. SPS 515 will come into force from January 01, 2020. To assist registrable superannuation entity (RSE) licensees in implementing the new requirements, APRA released a finalized prudential practice guide SPG 515 on Strategic and Business Planning, along with a draft prudential guide SPG 516 on Business Performance Review for a six-week consultation period that ends on October 10, 2019. APRA expects to release the final version of SPG 516 in December.

    SPS 515 sets out the requirements for an RSE licensee to set strategic objectives for its business operations and to maintain a written business plan that articulates the approach of an RSE licensee to achieving these strategic objectives. SPS 515 contains prudential requirements to ensure that fund expenditure is in the best interests of members and that there is a comprehensive decision-making and monitoring process for expenditure that is determined by its size or nature to be significant. SPS 515 also requires an RSE licensee to undertake a business performance review to annually assess its performance in achieving its strategic objectives. The guidance in SPG 515 relates to the business planning and expenditure management requirements in SPS 515. SPG  is also to be read in conjunction with SPG 516 on Business Performance Review, which provides guidance on the APRA expectations with respect to the business performance review and the annual outcomes assessment required under the Superannuation Industry (Supervision) Act 1993 (SIS Act). The Business Performance Review requires an RSE licensee to analyze its performance in achieving its strategic objectives, including the following:

    • Results of its monitoring of performance against the business plan
    • Outcomes achieved for different cohorts of members against objective internal and external benchmarks
    • Results and underlying analysis from the annual outcomes assessment

    As part of the consultation on SPG 516, APRA has substantially revised the guidance in draft SPG 516 to reflect the legislated outcomes assessment, the Business Process Review, and the movement of some guidance material into SPG 515. APRA is, therefore, releasing SPG 516 as a draft for consultation and welcomes feedback on it, particularly the guidance on the legislated outcomes assessment. The release of draft SPG 516 is intended to provide industry with more certainty on the APRA expectations for the Business Performance Review and components of the legislated outcomes assessment that are not currently envisaged to be dependent on the SIS Regulations. This draft guidance will allow RSE licensees to prepare for implementation of the prudential requirements from January 01, 2020.

     

    Related Links

    Comment Due Date: October 10, 2019 (SPG 516)

    Effective Date: January 01, 2020 (SPS 515)

    Keywords: Asia Pacific, Australia, Insurance, Pensions, Superannuation, SPS 515, Business Performance Review, SPG 516, SPG 515, Outcomes Assessment, APRA

    Related Articles
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    News

    HM Treasury Announces G7 Agreement on Green Agenda Ahead of COP26

    HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6821